Stock Analysis

3 Stocks Estimated To Be 33.6% To 43.9% Below Intrinsic Value

KOSDAQ:A078340
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As global markets show signs of resilience with U.S. indexes nearing record highs and broad-based gains across sectors, investors are increasingly attentive to opportunities that may be undervalued in the current economic landscape. In this environment, identifying stocks trading below their intrinsic value can offer potential for growth, making them attractive considerations for those looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows

NameCurrent PriceFair Value (Est)Discount (Est)
Victory Capital Holdings (NasdaqGS:VCTR)US$72.24US$144.0349.8%
NBT Bancorp (NasdaqGS:NBTB)US$50.12US$99.9349.8%
BP Plastics Holding Bhd (KLSE:BPPLAS)MYR1.20MYR2.3949.7%
Synovus Financial (NYSE:SNV)US$57.97US$115.6749.9%
Intermedical Care and Lab Hospital (SET:IMH)THB4.94THB9.8649.9%
EuroGroup Laminations (BIT:EGLA)€2.728€5.4249.7%
Nidaros Sparebank (OB:NISB)NOK100.00NOK198.6249.7%
Nutanix (NasdaqGS:NTNX)US$72.35US$143.9949.8%
SBI Sumishin Net Bank (TSE:7163)¥2914.00¥5793.0749.7%
VerticalScope Holdings (TSX:FORA)CA$9.01CA$18.0150%

Click here to see the full list of 914 stocks from our Undervalued Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Dana Gas PJSC (ADX:DANA)

Overview: Dana Gas PJSC operates in the exploration, production, transportation, processing, and sale of natural gas and petroleum products across the United Arab Emirates, Iraq, and Egypt with a market cap of AED4.83 billion.

Operations: The company's revenue is primarily derived from its oil and gas integrated operations, amounting to $300 million.

Estimated Discount To Fair Value: 33.6%

Dana Gas PJSC is trading at a significant discount, around 33.6% below its estimated fair value of AED1.09, with shares currently priced at AED0.73. Despite an 8% production decline and reduced earnings compared to last year, the company's earnings are projected to grow significantly by over 20% annually, outpacing the local market's growth rate. However, its high dividend yield of 12.38% isn't well-covered by free cash flows, indicating potential sustainability concerns.

ADX:DANA Discounted Cash Flow as at Nov 2024
ADX:DANA Discounted Cash Flow as at Nov 2024

Com2uS (KOSDAQ:A078340)

Overview: Com2uS Corporation develops and publishes mobile games across various international markets, including South Korea, the United States, and Europe, with a market cap of ₩535.68 billion.

Operations: Revenue Segments (in millions of ₩): Online Games ₩370,000; Mobile Games ₩210,000; Advertising ₩50,000.

Estimated Discount To Fair Value: 41.4%

Com2uS is trading at ₩47,150, significantly below its estimated fair value of ₩80,441.18, representing a substantial discount. Despite recent earnings showing a decline in net income to ₩3.21 billion from ₩18.31 billion year-on-year, the company is expected to become profitable in three years with above-average market growth and earnings projected to grow 95.28% annually. However, its dividend yield of 2.76% isn't well-supported by current earnings or free cash flows.

KOSDAQ:A078340 Discounted Cash Flow as at Nov 2024
KOSDAQ:A078340 Discounted Cash Flow as at Nov 2024

SEIKOH GIKEN (TSE:6834)

Overview: SEIKOH GIKEN Co., Ltd. designs, manufactures, and sells optical components, lenses, and radio over fiber products both in Japan and internationally, with a market cap of ¥40.69 billion.

Operations: The company's revenue is primarily derived from two segments: Optical Products Related, contributing ¥8.23 billion, and Precision Machine Related, contributing ¥8.78 billion.

Estimated Discount To Fair Value: 43.9%

Seikoh Giken, trading at ¥4620, is considerably undervalued with an estimated fair value of ¥8239.96, presenting a significant discount. The company’s earnings grew by 67.8% last year and are forecast to increase by 25.1% annually over the next three years, outpacing the Japanese market average. Despite high volatility in its share price recently, Seikoh Giken's revenue growth of 10.8% per year remains strong compared to market averages.

TSE:6834 Discounted Cash Flow as at Nov 2024
TSE:6834 Discounted Cash Flow as at Nov 2024

Summing It All Up

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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